Cowen starts Whirlpool, Rent-A-Center with outperform

Mon. September 15, 2008; Posted: 12:08 PM

- Sept 15, Sep 16, 2008 (Reuters via COMTEX) -- WHR | Quote | Chart | News | PowerRating -- Cowen and Co began coverage of home-products providers, including Whirlpool Corp and Rent-A-Center Inc, and said capital allocation and market position will be the most important drivers of companies' ability to weather tough demand trends and rising costs.

The brokerage began coverage of Whirlpool and Rent-A-Center with "outperform," citing the companies' market share and strong cash flows.

Whirlpool dominates the global appliance industry with nearly half of the U.S. market and 20 percent of the global market, but the stock is significantly undervalued based on its long-term earnings potential and cash-flow generation, the brokerage said.

Rent-A-Center has a market share of about 40 percent in the rent-to-own industry, and its large store base and experience in the industry give it a sustainable competitive advantage, Cowen said.

The brokerage resumed coverage of Bed, Bath and Beyond with an "underperform" rating on valuation.

It also began coverage of Williams-Sonoma Inc and Lowe's Companies Inc with an "underperform" rating, citing competition and difficult industry trends.

The brokerage also started coverage of Aaron Rents Inc, Mohawk Industries Inc and Home Depot Inc with "neutral." (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Deepak Kannan) ((nivedita.bh@thomsonreuters.com ; within U.S. +1 646223 8780; Outside U.S. +91 804135 5800; Reuters messaging: nivedita.bh.reuters.com@reuters.net)

Keywords: WHIRLPOOL/RESEARCH COWEN

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For full details on Whirlpool Corp (WHR) click here. Whirlpool Corp (WHR) has Short Term PowerRatings of 5. Details on Whirlpool Corp (WHR) Short Term PowerRatings is available at This Link.

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